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According to media reports, the Chinese government on 19 May 2021 said that it is ramping up the efforts to stabilize the commodity market in the country to keep the inflation rates in order and prevent passing higher prices to consumers. 

Officials posed a sterner tone, pledging local producers to increase outputs, vowing to crack down on speculations and tougher oversight on both spot and futures markets while maintaining a stable monetary policy. 

Major polyolefins contracts for September delivery on Dalian Commodity Exchange fell sharply after the comments. As of 20 May 2021, the PP contract has fallen CNY287/ton ($45/ton) from the beginning of the week, while the LLDPE contract dropped CNY245/ton ($38/ton) and PVC contract plunged CNY315/ton ($49/ton).

Trading sentiment in the domestic spot market took a dive with buyers withdraw to the sideline to monitor further development before making additional purchases.  

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